Here's my view:

4% returns to customers is probably still profitable for Versa, maybe just less margins. Even FD can get above 4% already.

Each customer has a 30k capping and the promo bonus rate is only for 3 months, which is only RM37.50 extra per month for every RM30k you're putting in their hands.

Earlier this year Versa announced a milestone of RM100 million in total transactions on their platform since launch, which is tiny, and 30,000 users registered. I suspect a majority are inactive and only have small deposit amounts. You can extrapolate the marketing budget allocated for this from a few data points.

Isn't it working just like the underlying AHAM EDF ? Returns are reflected in:

1. the increase of your unit price (today's price is RM1.1795 per unit, which when multiplied with the number of units I have based on the most recent notice from AHAM, tallies with the value shown on Versa).
2. the increase of your number of units (periodic payouts of income distribution reinvested)

During the promo period, there is also a bonus payout to close out the difference and meet the 4% payout commitment, which we wouldn't get if we invested in the AHAM EDF directly.

You would have to redeem your Versa Cash investments and then calculate the actual cash payout versus a 4% daily interest payout on your initial investments to confirm if there's any discrepancies. If there is, do file a complaint to Versa and also let us know here. 😁

Income distribution for Versa is once a month.

The value you see in the app is the value of your current units based on today's unit price of the AHAM enhanced deposit fund

Versa does not pay daily interest...

Increase in unit price too.

i got a cash reward notification today, noticed it's dated 9/1 in the transaction history. Not sure if we need to wait until 31st Jan to see if the 4% adjustment comes in later. I guess we should all go ask Versa.

This post has been edited by gooroojee: Jan 11 2023, 11:11 AM

perhaps you financial gurus can calculate your ROI for December based on:

- Your opening balance on Dec 1st
- Your closing balance on Dec 31st
- Your cash reward/rebate for Dec which was paid out today (the bonus)

I had a chat with Versa and they gave me this:

- 1 Dec = RM30,086.49
- 31 Dec = RM30,191.89
- 9 Jan = RM14.01

Total returns for Dec = RM119.41

to be honest i can't make heads or tails from the sheet.. haha...

but if there are additional deposits or withdrawals over time, i just line them up and then use the XIRR function in Excel to get the %...

To simplify it a bit, let's put a starting balance on 1-Nov, then end balance on 31-Dec (as reported on Versa app on that day - and Versa support can also tell you the amount), then add the 'adjustment' on 9-Jan.

The combined IRR should be at 4%. Would be great to see others' returns to triple confirm.

Ok, so i had another look at your sheet, and it seems you are dating your deposits on the day you deposited to Versa, and not the date Versa converted them to AHAM fund units, which per your spreadsheet is 2 days later.

So, if I adjusted the dates on your deposits to when it's actually 'interest bearing', it looks about right.

i think you need to minus one day off all your manual formulas as your ending balance is as of 31-dec... i.e. 31-dec minus 30-dec doesn't equal 2 days of 'interest'.

Update from Versa: Versa Cash provided a 3.45% p.a. return for Dec'22, far above it's target of 2.75%.

This rate was applicable for all funds that didn't qualify for the promotional 4% rate, e.g. funds above the RM30k cap.

Actually ended up 0.01% better than KDI even without promotional bonus.

Nope. It's 3.45%, then plus 0.55% for the first 30k.

Don't think PIDM protects from ewallet glitches or credit card fraud either.

Versa Cash works like unit trusts based on a AHAM fund. For most people the risk isn't of the fund disappearing or your deposits glitching, it's just the risk of lower returns than your expected target.

At least until this month end, the returns are almost guaranteed to be 4%, which is actually better than investing directly into the fund on your own, so it's nice place to park money which can be withdrawn at any time, unlike FDs.

My recommended amount for you is whatever let's you sleep comfortably at night.

It works like unit trusts...

Go+ interest is credited daily but limited to rm9500 in terms of the amount you can deposit.

Versa Cash works more like traditional unit trusts where returns are reflected by fund price and dividends. There is a promotional 4% p.a. return for this month of Feb, so if you deposited on 31st Jan and withdraw all of it on 28th Feb, you will get 4% returns divided by 365 days multiplied by 28 days. A portion of that 4% payout will only be paid out to your account roughly by mid March 2023. The 4% promotion is valid for the first RM30k deposited. Any amount above RM30k will earn the prevailing fund rate, e.g. 3.45% last month... the AHAM fund performance is similar to TNG's underlying Principal fund performance, which was around 3.5% on average last month.

This post has been edited by gooroojee: Feb 2 2023, 01:24 PM

Versa returns for Feb 2023 is reported to be 3.9%... so they only needed to top up 0.1% for the 4% promotion, but any amount above rm30k you placed in Versa cash would still have gotten 3.9% ... higher than KDI or other MMF out there.

This post has been edited by gooroojee: Mar 3 2023, 09:05 AM

Above rm30k also almost 4% already maa...

This post has been edited by gooroojee: Mar 4 2023, 12:22 AM

their return without the campaign is already at 3.9% for Feb. that's why. it's a good thing.